The housing development project known as Yankton Flats in the former Colonial Manor nursing home is still going too happen, but for now, it will be a more scaled-back version.
The building was purchased in 2024 by KEH Inc., which requested $100,000 from Lyon County as gap financing for the development of nine new rental units as part of their application to the Workforce Housing Development Program through Minnesota Housing.
Although the conversion project received a score above other projects in Minnesota, it was not selected to receive the funding.
At this point, there is no funding for the Workforce Housing Development Program and future rounds of funding will not be known until this year’s legislative session is complete.
To date, KEH has incurred $127,000 in expenses, which includes initial demolition and construction work, plus the purchase cost of the building itself. Cost estimates to finish the first three units total $167,000 for roof repair, water and sewer service, and plumbing and mechanical work.
The County originally approved funding for the project to create nine new rental units, but because a State-deferred loan from the State, the scope of the project will now be done in phases, as it has been reduced from nine to three units for the time being. KEH is committed to finishing the other six units with the support of SAHA funds.
KEH is requesting county approval of $100,000; the County received an allocation of $104,699 in 2023 and 2024 and $44,105 in 2025.
Lisa Graphenteen, representing Development Services, has been working with KEH for about a year on the project. She appeared Tuesday before Lyon County commissioners to recommend a deferral period that would require completion of all nine units in a reasonable timeframe.
KEH has indicated it would be able to finish the first units by the end of 2025.
Commissioner Rick Anderson made a motion during Tuesday’s meeting to approve the $100,000 of SAHA funding for KEH; Commissioner Paul Graupman seconded.
